Agriculture, Lithuania, Markets and Companies, Mergers and take-overs

The agreements shall come into force if there are no objections from Competition Council. AB Linas Agro Group is planning to spend LTL 32 million on the acquisition of shares, writes LETA/ELTA.

UAB Dotnuvos projektai, established in 1996, is among the leading sellers of agricultural machinery, seeds and grain storage equipment in Lithuania. Together with its subsidiaries, the company has 214 employees. The main activity of the company is wholesale and retail trade of new and used agricultural machinery and its spare parts, seed production, processing and sales, as well as design and construction works of grain cleaning, drying and storage facilities. UAB Dotnuvos projektai manages subsidiary companies in Latvia and Estonia and four Lithuanian branches in Joniskis, Pasvalys, Vilkaviskis and Plunge. The turnover of the company totaled LTL 193 million (EUR 55.89 million) in 2011, EBITDA reached LTL 15.5 million (EUR 4.48 million), while the turnover of the first six months of 2012 totaled LTL 98 million (EUR 28.38 million).

AB Linas Agro Group purchased 50% of UAB Dotnuvos projektai shares in 1999. The current plan is to acquire the rest 50% and take over the management of the company.

"UAB Dotnuvos projektai is among the leaders in each field it operates and all fifteen years of its business have been profitable. It has become a large-scale international company, the growth of which has especially been rapid over the past five years. The management of the company has gathered experienced team of professionals, and that is one of the company's strongest sides. The experience of Linas Agro Group would ensure successful continuation of efficient service to farmers and the highest level of services to other customers.

The company is a definite Lithuanian leader in seed processing and trading as well as in constructing grain storage facilities and takes significant part of the market. UAB Dotnuvos projektai is among three market leaders trading western machinery.

Our aim is to increase the present market share in Lithuania, but the main expansion will take place abroad. The company received exclusive rights to sell Case IH and Kvernland Group agricultural machinery in Latvia and Estonia, countries that has good potential for the growth of market share. In 3-4 years, the company is expected to take the same leading market positions in Latvia and Estonia as it has in Lithuania. We will also search for opportunities to expand in neighbouring markets – Kaliningrad region (Russia) and Belarus", commented Deputy Managing Director of AB Linas Agro Group Andrius Pranckevicius.